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Controversy Over Johan Castberg Oil Ship (FPSO)

 

The Johan Castberg field lies in the Barents Sea, 240 kilometres north-west of Hammerfest. With proven volumes estimated at between 400 and 650 million barrels of oil, it will be developed with the FPSO with additional subsea solutions, including 18 horizontal production wells and 12 injection wells.

Storting politician Geir Iversen believes that Finnmark will lose both income and jobs since the oil from the Johan Castberg ship will not be brought ashore, but sent directly to the market from the sea. Photo: Lars Morken / Kristina Brekke / Equinor / NRK.

The Johan Castberg field. The plan is for oil to be produced here for 30 years – at most 220,000 barrels per day. Photo: NRK.

The project was supposed to come on stream in the fourth quarter of 2022, however, the start-up is now scheduled for the fourth quarter of 2024. The oil will be offloaded to shuttle tankers and transported to the market and the field is expected to be producing for more than 30 years.

According to Sembcorp Marine, which built the ship, Johan Castberg is designed to FPSO hull main specifications, including Norsoks and DNV Class Rules, with an improved design concept and engineering logic embracing work environment and technical safety requirements, winterisation and other ocean data prerequisites. Johan Castberg, Sembcorp Marine’s first EPC newbuild FPSO, also met the stringent requirements of the Norwegian and the Petroleum Safety Authority regulatory requirements, the shipbuilder said. The FPSO hull is built to be self-contained for harsh-environment operation, with living quarters accommodating up to 140 personnel on board.

We have the biggest setbacks with this, we should have been able to flourish with the resources we have. But the jobs we could get will now be a completely different place.

That's what a disappointed Center Party politician, Geir Iversen, says.

The Storting representative from Finnmark believes that it will not benefit Finnmark that the Johan Castberg ship has now anchored in the Barents Sea 240 kilometers outside Hammerfest.

Iversen fears that there will be less income and jobs locally in the county.

The result of this is more income for the state and less income for Finnmark, we see that happening all the time regardless of whether it is road construction or whatever.

Together with several politicians, he has worked for a long time for the oil to be brought ashore from the Goliat field, so that it could be temporarily stored inside the mountain at Slettnes on Sørøya.

It has also been discussed to land the oil at Veidnes in Nordkapp municipality.

But none of these projects became a reality. Instead of being sent ashore, the oil will be transhipped at sea and from there sent directly to the market.

This is an important milestone for Equinor, says Trond Bokn, director of global project development at Equinor.

Johan Castberg strengthens Norway's role as a reliable, long-term energy supplier. The field will create great value for society, and long-term ripple effects and jobs.

Director for global project development at Equinor, Trond Bokn. Photo: Thomas Halleland / NRK.

Kjell Giæver is a manager at Arctic Energy Partners, which is the supplier network for the energy industry in Northern Norway. He is positive about the new ship and the ripple effects it can have for Finnmark.

This type of installation generates several hundred jobs directly in Finnmark. You should cheer for that, he says.

According to Equinor, every third employee at Johan Castberg lives in Northern Norway. The field will also have a supply and helicopter base in Hammerfest.

Nevertheless, Giæver agrees with Iversen that Finnmark needs a more competent workforce.

We must work as a team to get young people to stay and get more people to move to Finnmark. Make sure we have the right skills. It is a common concern for all industries.

Source: NRK, Offshore Energy

Read more on the topic: Offshore Energy, gCaptain, Equinor

30.09.2024